AMMO (POWW) has disclosed a new risk, in the Costs category.
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AMMO faces significant business risk from excess inventory, which, if rendered obsolete or unsellable, could necessitate substantial write-downs. Such write-downs would result in a lower inventory valuation on the balance sheet and concurrently inflate the cost of goods sold on the income statement, adversely affecting AMMO’s profitability. Moreover, the company’s statement of cash flows would be impacted as tied-up capital is released, altering net income and future cash flows, potentially undermining financial stability and investor confidence in AMMO’s operational efficiency.
Overall, Wall Street has a Moderate Buy consensus rating on POWW stock based on 1 Buy.
To learn more about AMMO ‘s risk factors, click here.
